General Cable prices $315 million seven-year convertibles to yield 0.875%, up 27.5%

New York, Nov. 9 - General Cable Corp. priced a $315 million of seven-year convertible senior notes after the close Thursday to yield 0.875% with a 27.5% initial conversion premium.

The deal came towards the rich end of talk which had put the coupon at 0.75% to 1.25% and the initial conversion premium at 22.5% to 27.5%.

The conversion price is $50.36 and the conversion ratio is 19.856.

The notes were offered at par. There is a greenshoe for a further $40 million.

Merrill Lynch and Credit Suisse are the bookrunners of the registered off-the-shelf offering.

The notes will be non-callable and will have no puts.

There will be a contingent conversion hurdle at 130% of the conversion price.

The notes will have dividend protection and takeover protection in the form of a change-of-control put and a make-whole premium.

There will be a net-share settlement feature.

General Cable, a Highland Heights, Ky.-based maker of electrical and electronic wires and cables, said $61.4 million of the proceeds will be used to repay an outstanding senior secured debt that matures in 2010. It will also use the proceeds to fund convertible note hedge and warrant transactions.

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